The New Delhi statement, issued at the conclusion of the Assembly, that GEF activities will be based on national priorities and will make the process of determining incremental costs transparent and flexible, reflects the victory scored by developing countries.

The declaration pledged to increase GEF funding from two billion dollars to 2.75 billion dollars for the next three years. However, the US suggestion that the number of GEF implementing agencies be increased from the present three did not find favour in the Assembly's final statement.

The Assembly began with GEF's implementing agencies, the United Nations Development Programme, United Nations Environment Programme and the World Bank, painting a rosy picture of their contributions towards cleaner environment programmes in the developingcountries.

India, China and Brazil, the top three recipients of GEF's funds, went on the offensive, voicing concern over the issue of incremental costs and delays in GEF project funding and implementation. Thy said that the process of determining incremental costs in environment conservation projects should be more flexible and pragmatic.

The World Bank, whose India eco-development project in Karnataka has erupted into a controversy, also paid heed to India's concern over the issue.The controversy centres on payment of compensation to uprooted local inhabitants in Karnataka's Nagarhole where an elephant reserve is to be set up with World Bank aid.

World Bank managing director Caio Koch Weser said the bank was encouraging Indian government and local authorities to visit non-governmental organisations to resolve the issue. Another concession was whether GEF programmes are compatible with individual priorities of nations.

Delegates from Asia, Africa and Latin America said that the GEF programmes, withemphasis on climate change and ozone depletion, are out of tune with national priorities of developing countries. Desertification is causing major concern in Africa, while bio-diversity conservation needs urgent attention in Asia, Africa and Latin America, delegates pointed out.

The final statement of GEF Assembly concedes this demand, stating that ``GEF activities should be based on national priorities designed to support sustainable development and the global environment.'' GEF also agreed to implement an action plan to strengthen country-level coordination.

Conceding the issue of desertification, the Assembly said GEF would increase support to combat land degradation and would seek to define better the linkages between land degradation, especially desertification, and deforestation.

It also agreed to give more room to NGOs which have been critical of the domination of international funding agencies in GEF programmes.